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V3373-14 23 December 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · empresario

Association's peritage refactoring subject to VAT and IRPF retention

An association of engineers asks whether refactoring expert services to the Galician Government is subject to VAT and what IRPF withholdings it must apply. The DGT determines that the entity is a business for VAT purposes and must issue invoices at the standard rate, along with applying IRPF withholdings when paying experts.

The question raised

1.) Taxation of the operation within the scope of Value Added Tax.

The DGT's ruling

The entity is considered a trader by organizing means to carry out a mediation activity; therefore, the rebilling of expert services is subject to VAT at the general rate. Likewise, as a legal entity making payments for professional activities, it is obliged to apply the corresponding personal income tax withholding in accordance with current regulations.

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